The Monetary Policy Committee (MPC) is the decision-making body for monetary policy under the inflation targeting regime. The MPC is made up of the Governor, Deputy Governors, a member appointed from among the members of the Board and another member appointed by a joint decree upon recommendation of the Governor. The Undersecretary of Treasury or a Deputy Undersecretary authorized by the Undersecretary can attend the meetings without voting capacity.
Before the monetary policy decision is made, relevant units of the CBRT inform the Committee about inflation, balance of payments, economic activity, public finance and international developments in detail. The Committee meets with the participation of at least two-thirds of its members, and the decisions are made by a majority vote. In case of a tied vote, the Governor has the deciding vote.
The Committee determines the principles and strategies of the CBRT’s monetary policy, and sets the inflation target together with the Government. Introducing measures to protect the value of the Turkish lira in domestic and foreign markets is also among the duties of the MPC.
Monetary Policy Committee announcements are one of the main communication tools for monetary policy.
The Committee convenes based on a pre-announced schedule. The decision of the Monetary Policy Committee and a brief rationale are announced on the CBRT website immediately after the meeting. The summary of the MPC meeting that includes detailed assessments of the Committee is posted on the CBRT website within five working days following the meeting.
The Monetary Policy Committee makes its decision in view of the price stability objective as stipulated in the CBRT Law. Hence, the MPC employs a large data set, and focuses on the inflation outlook for the upcoming period with a medium-term perspective.